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- **Q3 Record Results**: 11.1% YoY revenue growth to $41.5M, EBITDA up 15% to $20.8M, and a 10% dividend increase to $0.11 per share.
- **Market Leadership**: 27,000 HP added, Devon Energy now a 10%+ customer, and 2026 CapEx guidance of $50-70M reflecting strong contracted growth.
- **Customer Expansion**: New opportunities in data centers and LNG, with 2027 RFPs indicating sustained demand.
- **Financial Strength**: Lowest leverage ratio (2.5x) among peers, operating cash flow of $16.8M, and DSO of 28 days.

**【CEO Summary Section】**
- **Record Q3 Performance**: Achieved $41.5M in total rental revenue, up 11.1% YoY, with adjusted EBITDA of $20.8M (+15% YoY). Introduced a dividend of $0.11 per share, a 10% increase.
- **Market Share Growth**: Added 27,000 HP, with Devon Energy now accounting for 10% of year-to-date revenue. Raised 2025 EBITDA guidance to $78-81M.
- **2026 Outlook**: Anticipates $50-70M in growth CapEx, driven by contracted units and new customer opportunities in data centers and LNG infrastructure.

**【CFO Financial Commentary】**
- **Revenue and Profitability**: Rental revenue grew 11.1% YoY to $41.5M, with adjusted gross margin at 61.5%. Net income rose 14% YoY to $5.8M.
- **Liquidity and Efficiency**: Operating cash flow of $16.8M, DSO of 28 days, and a leverage ratio of 2.5x, the lowest among peers.
- **Dividend Policy**: Committed to a growing dividend while maintaining strong growth, with a $0.11 quarterly dividend announced.

**【Q&A Highlights】**
- **Customer Demand**: Strong activity in gas lift and new customer interest, despite oil price volatility. 2026 unit lead times up to 60 weeks but manageable with current contracts.
- **Margin Trends**: Near-term margins stable at low 60s, with long-term improvement from large HP mix and data-driven optimization.
- **Growth Balance**: Confident in 2026 CapEx range, prioritizing organic growth while enhancing shareholder returns through dividends.

Natural Gas Services Group, Inc. (NGS) Q3 2025 Earnings Call Transcript

Rental Income

Sales

Service and Maintenance Income

NGS

NGS fundamentals

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